Principles of Economics

1. Definition of PPC

1. PPC is a graphical representation showing all possible combinations of two goods that an economy can produce using its available resources and technology efficiently.
2. Efficiency: Points on the curve represent efficient production levels.
3. Scarcity: The curve highlights resource limitations.

2.

1.

Opportunity cost is a fundamental concept in economics that refers to the value of the next best alternative foregone when a choice is made.